A recent survey shows that many ultra-net worth individuals (UHNIS) in India are considering migration due to living conditions, tax advantages and business opportunities abroad.
Where do Indian ultra-high net worth individuals migrate to where?
A recent survey shows that a large number of super-wealthy people or ultra-net-worth individuals (UHNIS) in India are planning to either leave the country or are already leaving the country. The survey was conducted by Kotak Private Banking, a division of Kotak Mahindra Bank, and showed that at least 22% of UHNIS wanted to move abroad. The survey was conducted in the first two quarters of last year, with surveys in more than a dozen cities and interviewing about 150 UHNIS with net worth over Rs 2.5 lakh.
The main reasons for the migration plan include better living conditions, more tax advantages and a more business-friendly environment. Many of these UHNIS are looking for destinations such as the United States, the United Kingdom, Australia, Canada and the United Arab Emirates. The UAE’s Golden Visa Program is particularly popular in the group.
One of the key factors driving this migration is the desire to improve the quality of life abroad. UHNIS believes better health care, education and a more welcome business environment are the main reasons for considering this move. Interestingly, despite their intention to live abroad, many Uhnis expressed their desire to retain their Indian nationality.
Among those who wish to migrate, it is found that professionals are more likely to do so than entrepreneurs or successors. The survey also shows that UHNIS who are most likely to leave India are between the ages of 36 and 40, and UHNIS who are over 61 years old.
The survey estimates that India has Rs 2.83 lakh in 2023 and its shared wealth is Rs 2.83 lakh crore. This figure is expected to increase to Rs 4.3 lakh by 2028, with a net worth of Rs 3.59 lakh crore. The Kotak survey also highlighted that UHNIS diversifies its assets globally, including equity, real estate and other investments.
While some believe that such outflows of wealth may indicate a slow down in India’s economy, Kotak Mahindra Bank President Gautami Gavankar stressed that investigations should not be considered as capital leaving the country. The restrictions on how much individuals can move out of India limit the financial impact of such immigration.
All in all, while the survey shows that many super-wealthy people are considering moving abroad, the process is complex and India’s overall economic growth continues to attract more UHNIS.
